• ABC News, Monday, December 14, 2009 2:25 PM

Citing optimism among advertisers for fiscal 2010, Jefferies just raised its price target on Google's stock to $695 from $600, while reiterating its buy rating. "Our channel checks point to strengthening advertising, ecommerce environment and improving fiscal 2010 outlook, which bodes well for Google," analyst Youssef Squali said in a research note.

Supporting the prospect for modestly positive growth in ecommerce this holiday season, online sales were up 3% from November 1 to December 6 of this year. "Google, with its ability to cost effectively drive traffic to e-tailers, stands to benefit disproportionately," Squali added. Indeed, over 65% of online ad budgets continue to go to search, with Google claiming the lion's share, he said.

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